Kumho opens first North American production facility

Macon, Georgia – Kumho Tire USA Inc. opened its first and only North American production facility on 2 May.

The plant in Macon has an annual capacity of four million passenger and light truck tires, Kumho said, and is expected to serve as a foundation for enhancing the tire maker’s market share in North America.

“North America is home to one of the world’s largest auto and tire markets. We believed a production base on this crucial continent is a must if we are to significantly expand our presence in the market in our bid to become a top tire manufacturer,” said Park Sam-gu, chairman of Kumho Asiana Group, at the grand-opening ceremony 2 May at the factory.

“Along with this state-of-the-art facility,” Sam-gu continued, “Kumho will put into place an advanced management system for day-to-day operations so that all employees can be proud of their company.”

He added that the tire maker also will strive to make the plant “the pride of the entire community.”

According to a release issued by Kumho, the company’s goal is to gain a foothold in the region’s OE market and it believes its Macon facility gives it the ability to grow. The new plant is located 184 miles from Hyundai’s Alabama auto plant and Kia’s Georgia plant is just 110 miles away.

Earlier this year, at Kumho’s US dealer meeting, Jim Mayfield, executive vice president of marketing and sales for Kumho Tire USA, told ERJ sister publication, Tire Business, that among the company’s goals for 2016 are improving efficiency and working toward a better positioning strategy for its products.

“We’ve got an aggressive plan to launch new products in 2016, just like we did in 2015,” Mayfield said. “We’re going to continue work on solidifying our pricing position and identifying where we really should be positioned in the market place.”

The company heralded its entry into domestic production when construction began in 2008 on the Macon factory, but following a global financial crisis, work at the site ground to a halt and was suspended before resuming in 2014.

The factory is equipped with a cutting-edge proprietary system dubbed Automated Production Unit (APU), which the company claims will help boost product quality and manufacturing efficiency. In addition, a new lot tracking system (LTS) using radio frequency identification (RFID), combined with laser guided vehicles (LGVs) – unmanned carriers that move along pre-determined routes – ensure a fully-automated movement of products, allowing for real-time production control on a strict first-in-first-out basis, Kumho said.

About 300 people were on hand for the opening of the new facility, including Georgia Gov. Nathan Deal and Macon Mayor Robert Reichert. South Korean consul general in Atlanta Kim Seong-jin, and Lee Han-Seob, CEO of Kumho Tire USA’s South Korean parent firm Kumho Tire Co. Inc. also were on hand.

Kumho entered the US market in 1975 and opened its Kumho America Technical Center in Akron in 1990.